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Avalara Help Center

Manage Item Taxability

Some products and services are taxed differently in different jurisdictions. Apply Avalara tax codes to products and services you sell to help account for this varying taxability.

Items that aren't mapped to Avalara tax codes are treated as tangible personal property (TPP) and are fully taxed during calculation.

Map a tax treatment to an Avalara tax code in Salesforce Billing

In Salesforce Billing, when editing a Tax Treatment, use an Avalara tax code in the Tax Code field. AvaTax uses the tax treatment attached to the tax code to calculate sales tax on the associated product or service.

To map Avalara tax codes to items one at a time:

  1. In Salesforce Billing, go to Tax Rules > New.
  2. Enter information in the following fields:
    • Tax Rule Name: Provide a name for the item you're mapping
    • Active: Make sure this is selected
    • Taxable: Set to Yes 
  3. On the AvaTax rule page, under Tax Treatment, click New Tax Treatment.
  4. Enter information in the following fields:
    • Name: Provide a name for the item you're mapping
    • Tax Code: Enter an Avalara tax code
    • Tax Integration: Set to AvaTax
    • Tax Rule: Set to AvaTax Rule
    • Active: Make sure this is selected
    • Tax Legal Entity: Set to your default legal entity
  5. Repeat these steps for each tax code you need to map.

If you have multiple legal entities that need to use the same mapping, create a new tax treatment for each entity.

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